- On the daily chart, oil has broken a triangle which suggests a target around $75.
SINGAPORE: US oil may retreat to $67.57 per barrel before rising again, as it has just completed a small five-wave cycle from the May 26 low of $65.25.
The cycle is the first part of a bigger wave (3) from $65.25. This wave is expected to travel into $74.99-$77.29 range. The current fall is supposed to be shallow, most likely to end near the bottom of the wave iv around $67.57.
Theoretically, the retracement could be deep enough to extend to the bottom of the wave ii around $66.42. Based on the depth of the preceding wave (2), the $66.42 level could hardly be reached.
On the daily chart, oil has broken a triangle which suggests a target around $75.
The current drop could be classified as a pullback toward this pattern.
The uptrend would resume upon the completion of the pullback above a strong support zone of $65.65-$66.60.
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